Mercado Libre closes its offices in Córdoba due to high municipal taxes.

Due to the significant economic impact represented by the high municipal rates in Córdoba, Mercado Libre announced the closure of its offices in the city and the implementation of a 100% remote work scheme for employees at its software development center, currently located in the Capitalinas complex.

The company, a leader in e-commerce in Latin America, detailed that it pays around 770 million pesos (1,698,000 pounds) per month in local taxes, a figure that, according to their statement, is almost 24 times the monthly cost of renting the current office.

The technology center that the company has in Córdoba provides support and solutions to multiple company operations. "The amount is completely disproportionate to the activity carried out by the company and the size of its team and office in the capital of Córdoba, in addition to being the highest compared to other locations with similar operations," the company stated in an official release.

"There is no equivalent compensation in infrastructure or an improvement in services that would justify such a burden," they added.

Regarding the closure of its physical offices in Córdoba, Mercado Libre clarified that the measure is the result of several months of dialogue with municipal authorities and that "it doesn't in any way imply the closure of operations in the City of Córdoba or a reduction in staff."

The company explained that, when considering the total taxes established by the Municipality, the amount it must pay represents 2.11% of its revenue, a percentage that exceeds what it faces in other locations in the country where it keeps similar operations.

Starting in August, the 1,260 employees, mostly dedicated to technology areas, will continue performing their duties remotely, while the company analyzes different medium-term alternatives.

"We believe that, increasingly, taxes should serve development and not become an obstacle for those who are committed to the country's growth. Unfortunately, current rates force us to redefine where to locate our operations. Mercado Libre will continue making decisions based on policies that promote development, innovation, and employment," stated Juan Martín de la Serna, president of Mercado Libre Argentina.

"Incredible but true: in the City of Córdoba we pay 770 million pesos (1,698,000 pounds) per month in municipal rates, the highest amount in the country! With all options exhausted, we are leaving our offices and moving to 100% remote. People in Córdoba will continue receiving their orders just as quickly," Serna added on his X account.